Cities are the engines of economic growth, presenting opportunities for the inclusive socioeconomic development and prosperity of nations. A well-functioning housing market, offering decent, affordable, and safe housing for all is essential to maintain or increase this growth. Across the globe, cities are pressed to meet the housing challenge. National governments can assist them to meet their housing goals by developing an enabling environment supportive of infrastructure, investment, and macroeconomic policies targeted toward social and financial inclusion. The COVID-19 pandemic exposed deep weaknesses in the affordable housing market, especially for those living in informal settlements, homeless and underprivileged groups who were disproportionately vulnerable to the hazards of the pandemic.

The challenge of affordability requires immediate interventions and long-term strategies to achieve the structural changes to increase supply and meet the demand sides of the housing market. While cities can learn from some common lessons, they must formulate context-sensitive policies to address the housing challenges informed by a multi-stakeholder approach involving the public sector (at the local and national levels), the private sector, non-profit organizations, and residents.